Installment loans are a certain type of loan that help people make it through an unexpected financial emergency. They are easy to apply for and quick to receive, which means a sudden financial burden can quickly be dealt with. Indeed, many people see them as an easy way out of a financial difficulty.
What Are Installment Loans?
Simply put, they are a short term loan that is paid back in installments. These installments tend to be deducted straight from your paycheck, and the same amount will continue to be deducted until the loan is paid off. Each payment will be the same. Hence, it is quite easy to budget for these types of loans as well, since you always know how much will be taken from your salary and on what day. Whether you apply for installment loans online or through a high street financial institution, the loan will be worked out based on your monthly income and disposable income. The due date will always be your pay date as well. This means that you should never miss a payment.
Advantages of Installment Loans
One of the main advantages is that they are highly accessible. You can simply go to a lender’s website and apply for the amount you want. So long as you meet all the necessary conditions, the amount will be transferred straight into your bank account immediately. The entire process can be completed online, although the lender may need to contact you if there are some red flags on your application, such as less than perfect credit. However, you don’t need to present any paperwork and you also don’t need to visit a bank in store. Another great advantage is that there are no penalties for paying your loan off early.
How to Find Installment Loans
If you have an unexpected financial emergency and are looking for an installment loan, the best place to look is online. This is convenient, fast and completely hassle free. You provide them with information, which is then check to make sure it is factual, and the money will be put into your account. Do make sure, however, that you read the terms and conditions so that you are completely clear on what your rights and responsibilities are. Usually, there are a few requirements before you can be given a loan. These are:
- You must be at least 18 years old.
- You must have a valid and active bank account that is at least 3 months old and into which your salary is paid.
- You must be employed.
- You must be a legal resident of this country.
Whether or not you can obtain an installment loan if you have bad credit depends almost entirely on the lender. In many cases, you will need to provide some sort of collateral to secure your loan against, but some do not need this, instead charging you higher rates of interest. Do make sure you do your research so that you find the loan that will cost you the least.